I love waking up to the peaceful sound of ocean waves breaking on the beach while the sun streams in through the sheer curtain panels covering the windows. At some point down the road, we will probably buy a beach house in Nantucket. When that time comes, I will almost certainly have to work with a real estate agent to find the perfect house or piece of land that fits our needs and budget.
It would be so much easier if we could just visit town hall, select an undeveloped oceanfront lot, fill out a bit of paperwork, cut a very small check to cover the registration fee, and register our property with the recorder of deeds. This is obviously not possible because pretty much every piece of oceanfront real estate is owned by someone or not available for sale. If someone wants desirable real estate to build a home or business, they will need to need to buy it from the owner and pay whatever the market rate is. This is the case whether the piece of real estate has a structure on it or is totally undeveloped.
When it comes to domain names, the same thing holds true. Just about every desirable domain name is owned by an individual or entity. Some domain names have businesses operating on them, some are used for personal websites, and others are not developed (or underdeveloped). If a person wants to buy this valuable domain name, they need to work with the owner to come up with a fair sale price based on the market value. For example, the market has established that 3 letter .com domain names are worth at least 5 figures, often 6 figures, and perhaps 7 figures. A domain name is not worth less than the market value just because it doesn’t have a full business operating on it.
I can’t tell you how many people make ridiculously low offers using the logic that my domain name is not being used or is underutilized so it is not worth much. They seem to think that because I have not developed Hoy.com (means “today” in Spanish) that I am going to sell it for a fraction of its market value. No, that is not going to happen.
People seeking to buy a great .com domain name should be happy it is owned by a domain investor or someone else who is willing to sell it. I have come across and/or tried to buy thousands of great domain names that are simply not for sale. I would encourage them to try to buy a domain name from Oracle or Salesforce.com to see what it is really like to try to buy something that is not for sale regardless of the offer. Buyers should be thankful the domain name they want for a business or project is not yet developed into a major brand or owned by a huge company rather than get upset that it is owned by a domain investor.